financial assistance

Hello,

I am new here and am gradually working my way through the forum, hoping to find all the information one needs. Thanks already to everyone!

We want to build a house in Sachsen-Anhalt and I would like to know if you can recommend our plan based on the following data.

Costs:

[*]House including land 130000[*]Notary approx. 2000[*]Taxes approx. 4000[*]Total approx. 140000€

Equity: 55000€
Loan: 85000€

We are both employed and have a net income of approx. 3500€ together.
Currently, we have one child and are still paying off a car for the next 3 years. Current installment: 333€. This means that in 3 years we could pay off more.
Current cold rent: 550€
We can therefore currently pay off approx. 600€ per month. In 3 years this could be increased as the car will be paid off by then.

Is building a house advisable under these conditions? What kind of loan do you recommend (duration?, installment?, fixed interest period how long?)

Thank you already for your help.

Hello haeuslebauer99,

first of all, you should check your cost breakdown:

130,000 EUR purchase price
2,210 EUR notary costs 1.7%
4,550 EUR property transfer tax 3.5%
3,240 EUR modernization?
140,000 EUR total

The difference is not very high, but you should not start with an avoidable financing shortfall - unless you can easily cover the additional 760 EUR from equity.

The financing could look as follows (with the KfW loan calculated without repayment in the first three years. Repayment there will only begin when your car loan is paid off (but also keep in mind that a new car might need to be purchased at some point)).

55,000 EUR equity
43,000 EUR construction loan, 3.85%, 3.92% effective, 100% disbursed, fixed for 10 years, 1% repayment = 173.79 EUR monthly (interest and repayment)
42,000 EUR KfW 124, 3.65%, 3.70% effective, 100% disbursed, fixed for 10 years = 127.75 EUR monthly (interest only) + 58.10 EUR repayment (=1.66% from the third year)
140,000 EUR total = 359.64 EUR

With this financing option, you can increase the repayment after three years when your car loan is paid off.

Your financing is therefore quite advisable against the background of a rent-like burden.

Personally, I find it important to orient oneself to one’s previous living circumstances. If you have so far been able to pay a rent of e.g. 500 EUR without problems, it will presumably also be the case in the future when you have to pay a loan installment of 500 EUR for your home financing.

However, if the financing rate increases significantly above your previous rent, this can only be compensated by a future higher income or significant cuts in your previous standard of living.

Best regards

M. Thiemann

Hello M. Thiemann,

thank you very much for the detailed answer!!!!!!!!!!

Did you mean at the beginning of your post the difference between the construction/purchase sum and the final price? We also recalculated this and now assume €150,000.

We probably want to build. How would that then proceed? We still have to pay rent during the construction phase. That means we could use a maximum of €300 per month for a possible repayment. The car will be paid off in 2 1/2 years and hopefully will last the next 10 years. But of course, one cannot know that.

What do the numbers/percentages behind the loans mean? The following: nominal interest rate, effective interest rate, 100% repaid after 10 years, 10 years fixed nominal interest rate?

Paying the current cold rent of €550 is not a problem.

Where can I find information online about loans of this type? I have already found Kfw. Are there any comparison portals? I have not found anything good there.

Hello again,

I meant the amount of incidental acquisition costs (notary & court costs rather 1.7% instead of 1.5%, as well as the amount of the real estate transfer tax 3.5% - 4.5% depending on the federal state).

Rental payments during the construction phase, or already starting payments for initial loan disbursements used, are called "double burden during the construction phase." For that, you would of course first need to know how long the construction phase is expected to last and when which disbursements are likely to occur.

The whole topic is too extensive to cover completely here.

Since you are still at the very beginning of your considerations, you should get personal advice from different construction companies to develop a feel for your various concerns. Only in this way can you slowly get a grasp of the subject.

The given values mean:
1. Nominal interest rate
2. Effective interest rate
3. Disbursement rate
4. Interest fixation period in years
5. Repayment amount
6. Monthly installment in EUR

Best regards
M. Thiemann

Hello,

we have now been to the first company and they made us the following offer. But somehow it doesn't really convince me. What do you think?

[*]House: 94,990€ 111m²[*]Plot: 56,540€ 514m²[*]Cistern+handover shaft: 3,700€[*]additional earthworks: 5,000€[*]incidental building costs: 12,200€[*]materials for wallpaper, carpet, outdoor facilities: 7,000€[*]special requests: 3,000€[*]notary+tax: 11,000€[*]total: 193,430€

The house is the model: Frühling Bungalow from the company FIBAV. It has a solar system, but otherwise nothing special.

What do you think?

I personally find the 7,000 for wallpaper, carpet + outdoor facilities relatively tight. But it depends on whether any flooring is already included by the builder and what you want/can do yourselves. The figure is only for materials.